Nutanix Stock Up 12% On Cloud Infrastructure Deal
Shares of Nutanix (NTNX) rose yesterday after the hyperconvergence infrastructure specialist announced a deal to provide telehealth services for a community health center.
Telehealth has been one of the fastest-growing businesses during the pandemic because it enables remote doctor-patient visits. Nutanix shares finished the day up 12.1% on the news and the stock is now trading up a further 3% in Thursday’s trading.
Delaware Valley Community Health announced that it chose Nutanix to provide private cloud infrastructure to enable 75% of its workforce to work remotely and deliver telehealth services to patients. Nutanix helped the health provider dramatically reduce its average log-in time for electronic medical records from 171 seconds to just 19, making the telehealth process more efficient.
“With healthcare on the frontlines more than ever during this pandemic, it is crucial that organizations like DVCH are still able to provide the care and assistance their patients need. Having the right infrastructure in place allows organizations to focus on what truly matters, instead of being held back by an aging IT environment,” said Cheryl Rodenfels, Healthcare Strategist at Nutanix.
Nutanix was recently downgraded from Buy to Sell by Goldman Sachs analyst Rod Hall. “While we continue to believe Nutanix has a solid technology offering, we are increasingly concerned about its ability to return to revenue growth while reducing opex/sales to maintain adequate cash on the balance sheet,” he wrote.
Despite the downgrade, Nutanix stock has been on a tear lately, up 44% in the last month. TipRanks data reveals a Moderate Buy consensus among Wall Street analysts, with further room to run, as the 12-month price target is $28.46, 21% higher than today’s $23.45 level. (See Nutanix’s stock analysis on TipRanks).
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